In article <cfu6uv$6av[at]odak26.prod.google.com> ,
<peanutbutterjellyyummy[at]yahoo.com> wrote:

- quote -

The FICO score rewards those who have and use credit in a responsible
manner. In both of the cases that you cited, I would expect to see
your FICO score go up a bit as opposed to being hurt by what you
are planning to do. Just make sure that you do pay off those balances
and do not let them accumulate.

-john-

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John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
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I have a couple questions regarding FICO Scores and Credit Card
Incentive Plans. My current scores are 661, 662, and 773. I hope to
buy a house in a couple years, so obviously improving my scores is
crucial. These are my dilemnas:

1. I have one credit card. Currently, I charge about $20-50/month to
my credit card and immediately pay my bill when it arrives. That
credit card offers a 1% rebate on all purchases. If I was to use that
card for most/all cash expenses (roughly $300/month) I could earn
roughly $3/month. But since the ratio of average balance to the credit
limit is an indicator, could I be harming my FICO score by doing this?
My credit limit on this card is $8500.

2. A gas company (from which I frequently purchase gas) is offering a
3% rebate on all purchases using their credit card. I currently do not
have a credit card from that company. Would it be wise to get that
second credit card and save 3% on gas, or would this also harm my FICO
score?

I don't want to throw free money away by ignoring these incentives.
But, particularly since it is a relatively small amount of money, I
fear that taking advantage of these could slow the process of improving
my credit scores -- which in the long term could cost me far more
money.

Thoughts/advice?